Make to Order Production

SA P P P
 Agenda: Make to Order Production
Overview - Make to Order Production
Planning strategy - Pure make to Order (20)
Difference between Unrestricted use stock & Sales order stock
Planning strategy - Planning without Final Assembly (50)
Individual/collective indicator in material master
 Make to Order Production
 When working with the strategies for make-to-order production, the
sales order is the only pegged requirement.
 Sales order or customer order is the trigger for Production
 The net requirements calculation is carried out individually for every
sales order.
 Stock cannot be swapped back and forth between sales orders.
 The procurement elements, that is the planned orders are created
with reference to the sales order and are managed in the individual
customer segment.
 to the sales order also remains in the production This direct reference
order.
 The sales order stock is reduced when goods are issued to a sales
order.
Make to Order Production
 Different strategies in make to order
Strategies for Make-to-order production 20
production based
on sales order Planning without final assembly 50/52

Subassembly planning without final assembly 74

Planning with planning material 60

Strategy 20 – Pure Make to Order
 Planning Without Final Assembly - 50
 With strategy 50 (planning without final assembly), the finished
product is produced based on the sales order.
 To achieve short delivery times, certain assemblies should-be
produced or procured before the sales order for the finished
product is received.
 Planning that is independent of the sales order occurs using
planned independent requirements for the finished product. In the
MRP run, the system creates planned orders with Order type VP
for the finished product to cover these requirements.
 Planned orders of this type cannot be changed or converted into
an executable order such as a production order.
 Planned orders of type VP exist to drive dependent requirements
and capacity requirements.
Planning Without Final Assembly - 50
 Influencing MTO at the Component Level
 The individual/collective indicator in the material master record
determines whether a component is procured for a special
customer requirement in the individual segment.
 The indicator "1" for individual requirements means that the
material is being specially manufactured or procured for a sales
order. A special individual segment is created for each
requirement. An individual requirement is only created if the
higher-level material does not create a collective requirement.
 The indicator "2" for collective requirements means that the
material is produced or procured for various requirements. You can
find these requirements in the net requirements segment.
 The indicator "blank" means that the component is to be planned
in the same way as the higher-level assembly.
Individual/Collective Requirements Indicator
Thank you